Question: On December 1 , 2 0 2 4 , MXN / USD . 0 6 ( point 0 6 ) . On December 4 ,

On December 1,2024, MXN/USD .06(point 06). On December 4,2024, the MXN/USD currency exchange rate shifted to .08(point 08). Based on these date points, please select the most complete and accurate answer choice below. (See instructions re: concept of "converse relationship.")
A.
The Mexican Peso appreciated against the USD. As a Mexican importer of goods from the U.S., this is not good news. This means that the Mexican importer of goods from the U.S. will have to use more units of Mexican Pesos to purchase goods from the U.S.
B.
The Mexican Peso depreciated against the USD. As a Mexican exporter of goods to the U.S., this is good news. This means that the U.S. importer will have to use fewer U.S. dollars to purchase goods from Mexico, which will encourage the U.S. importer to purchase more goods from Mexico.
C.
The Mexican Peso appreciated against the USD. As a Mexican exporter of goods to the U.S., this isn't necessarily good news. This means that the U.S. importer will have to use more U.S. dollars to purchase goods from Mexico, which may deter the U.S. importer from importing goods from Mexico.
D.
The Mexican Peso depreciated against the USD. As a Mexican exporter of goods to the U.S., this isn't necessarily good news. This means that the U.S. importer will have to use more U.S. dollars to purchase goods from Mexico, which may deter the U.S. importer from exporting goods to Mexico.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!